Lenovo lamented the impact of the Covid-19 (coronavirus) pandemic on its mobile business in its fiscal Q4 (to end-March), as it was forced to shutdown its primary global factory in the Chinese city of Wuhan which contributed to a sharp revenue dip.
In an earnings statement the company said its mobile division was “on target for a breakthrough year” before the pandemic struck and caused the factory closure.
Mobile Business Group revenue declined 46.7 per cent year-on-year to $824 million in fiscal Q4, and slipped to a pretax loss of $60 million from a $4 million profit “after aggressive expense actions mitigated part of the negative impact from less supply”.
Despite the Wuhan factory shutdown, Lenovo said it leveraged its global manufacturing footprint and produced 6 million phones during the quarter.
At group level, revenue dipped to $10.6 billion from $11.7 billion, due to industry-wide supply disruption related to Covid-19, while net income dropped from $118 million to $43 million.
Revenue from the Intelligent Devices Group, which includes mobile, PC and smart devices, declined 4.4 per cent to $8.5 billion, with Data Centre Business Group sales down 3 per cent to $1.2 billion.Subscribe to our daily newsletter Back